Opinion: Should Large Tech Companies be Broken Up?

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Opinion: Should Large Tech Companies be Broken Up?

Brock Hines and Marlee Sorrells

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Should Large Tech Companies Be Broken Up

Pro – Brock Hines Con – Marlee Sorrells

The current opinion surrounding Facebook is one of unified displeasures. They were able to skirt around security issues with a promise that the user’s information will not be sold to outside companies. It brings up an important question about the power of Facebook and many other tech companies. Would there be a benefit of splitting large tech companies? I, along with ⅔ of Americans, believe the answer to be to break up these companies. The breaking up of large tech companies prevents further monopolization, prevent security issues, and further economic growth

The breaking up of companies prevents further monopolization. Back in 2012, Facebook acquired instagram, and 2 years later, they merged with Whatsapp. Many were unaware of the combining of the 2 social media giants. The issue comes with an ever expanding power that these companies have on our lives. Not only does Facebook continue to increase its influence, many companies such as Verizon and Microsoft have shaped the way we interact with people online.

By breaking up large tech companies, American security be preserved. With Facebook’s acquisition of Whatsapp, new security concerns arose about the privacy of its accounts. According to 99firms.com, there are 1.5 billions users of whatsapp. This provides a new security threat when the possibility of leaking personal information appeared in 2018. There are fears of Facebook releasing both the personal information and location in Whatsapp. Another issue that poses is the connected servers that both companies have. While many would see Facebook backing as a benefit, the connected security network allows malware to exploit one part of the system to acquire access to other information.

With large companies being broken up, the economy experience better growth. The entirety of the modern economy requires a large company to control the market which creates a system that intertwin products for the ease of the buyer. Although many would see this as encouraging the buyer, it flattens all thoughts of starting own businesses in tech industries. Due to the issue of when something becomes notable, the larger company will ecampus the smaller company products and all. The current tech industry drives the free market away from free to a company controlled segments of the market. This means that prices are less competitive because it means that these large companies can increase prices without check. Economics prove that without competitive prices, people are disincentivized from spending money, which means that money won’t circulate which is critical to growing economies.

 

 

Due to monopolies from large companies the debate has come up on whether or not companies should be broken up into smaller companies.

Large companies like Amazon and Facebook should not be broken up, because jobs will be lost and it will be harder for the economy to grow.

When a company as big as Amazon is split up into smaller companies large corporate and blue collar jobs will be lost. In a country that already has an unemployment rate of 3.5% that struggled to get it down from 1982 when it was 10.8%, there is no need to take away more jobs. This can lead people to struggle financially as more people are losing jobs and the fight for jobs becomes harder and more vital for them.

With the loss of jobs, the economy will struggle to grow, making new jobs impossible to find. When the United States collects taxes, the more money a company has, the more they have to give to the government. However, when companies are forced to split one portion is more likely to fail making the government unable to collect the same amount of money as they would’ve had the company stayed at its original state.

The opposing view states that splitting the large companies up will be beneficial to small businesses. This is true on the surface, but when taking a deeper look, one may find that in reality, the small businesses will face more competition from multiple successful companies instead of just one large company. Facing the multiple companies makes it harder for a small business to build their company as people are facing more options and are more likely to choose the easy option than ever.

If these companies do become to powerful, there is always the option to increase the taxes on companies that hold a certain amount of money or power in the market.

Thus, when considering if large companies should be taken apart into smaller ones, remember that jobs will be lost and the economy will ultimately be affected negatively.

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